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EU pig prices weaken, but show signs of stability

Iain HoeyBy Iain HoeyAugust 5, 20201 Min Read
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EU pig prices have weakened since the last update, although more recently have begun to show some stability according to a report by AHDB analyst Duncan Wyatt.

Over the past few weeks, UK prices have shown a degree of support and have been relatively independent of those in the EU. Over the long term, UK spot prices have a loose but positive relationship with prices in the EU.

“This relationship has been particularly weak recently, possibly because UK imports of EU pork have been cut in response to the closure of our UK foodservice sector,” Mr Wyatt commented.

As lockdowns ease across the UK, and trade recovers, the relationship between the EU and UK price markers might be expected to strengthen again.

Wyatt added: “The UK spot prices have certainly been falling in recent weeks, and reports suggest that processor contributions may also be coming under some pressure. Add to this sterling’s recent strength (which makes EU pigs cheaper in GBP terms), and there appears to be downward pressure on the SPP for the weeks ahead.”

 

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Iain Hoey

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